Vietnam’s government has officially issued Decree No. 264/2025/NĐ-CP, outlining the establishment and operation of the National Venture Capital Fund and local venture capital funds aimed at strengthening the country’s innovation and startup ecosystem.
The decree — enacted under the Law on Science, Technology and Innovation — oulines the legal foundation for how the funds will be organised, managed, and financed, including state capital contributions and oversight mechanisms.
DealStreetAsia had reported in May this year that the Vietnamese government is actively seeking inputs from diverse stakeholders to establish a venture capital (VC) fund to support the country’s nascent startup ecosystem.
In July, DealStreetAsia reported that Vietnam is targeting to raise $100 million for its first government-backed venture capital (VC) fund to support the country’s technology sector.
Operating under market principles and accepting controlled risk, the funds are designed to promote transparency, efficiency, and confidentiality while catalysing private investment into high-growth technology startups.
The National Venture Capital Fund will be structured as either a multiple-member limited liability company or a joint-stock company. Meanwhile, provincial-level venture funds will be established and run as local enterprises under the Law on Enterprises. Both have independent legal status, seals, and the right to open domestic and foreign bank accounts.
The Ministry of Science and Technology (MOST) will act as the state representative for capital ownership in the national fund and appoint state capital representatives at the entity.
According to the decree, the fund’s mandate is to invest in and attract further investment into innovative startups with high growth potential, particularly in high technology, digital transformation, strategic and green technologies, circular economy, and sustainability-focused projects.
The initial state capital for the National Venture Capital Fund will be drawn from the development investment budget of the Ministry of Science and Technology, with a minimum initial capital of 500 billion dong ($19.6 million) granted upon establishment.
Within the first five years, the fund’s charter capital is targeted to reach at least VND 2 trillion ($78 million), sourced from both state capital and contributions from domestic and foreign organisations and individuals.
At the local level, provincial venture funds will also receive one-time state capital injections from local development investment budgets, with the size and structure determined by provincial People’s Committees. These funds can further mobilise private and foreign investment under existing legal frameworks.
By formalising both national and local-level venture investment vehicles, Vietnam aims to accelerate its startup ecosystem, attract global capital, and enhance the commercialisation of domestic innovation, aligning with its broader goal of becoming a regional innovation hub.
